The post also included a poll, which came in with an almost perfectly linear relationship between price and the number of votes; the lower the price, the more people voted for it.

Since that post, I’ve emailed our existing customers and crunched the numbers. The results were pretty convincing – our price point was too high. When we released version 1.3 of our software, we’d bundled in our webserver option and pushed the price up from $199 to $399. Almost every customer we asked felt that that had been a mistake. For many of them, the webserver wasn’t of interest, so bundling it in wasn’t useful. And the new price took us out of their impulse-buy range. So we’re going back to the old model – $199 for the core product, $199 for the webserver.